A Conversation with Dave Ramsey

Williams tune into his daily broadcast his messages, blogs with relation with God's financial principles in the audience might otherwise never hear he is of course Dave Ramsey special program for you today moneywise from West Texas town financial expert in radio personality Dave Ramsey for a different look on money management. Your calls in question any financial topic at 800-525-7000 800-7000 times more reaching general market secular audience that's that's right here moneywise Rob if introduction were true, it would be with our guests today, some 15 million people every week. Here is financial program second only to Rush Limbaugh and Sean Hannity so he must be doing something right absolutely true and what a joy to have you on the program today.

Thanks for being with us. Well thank you my friend. Love you guys. We been friends a long time honored to get special time with well were grateful as well and here's my goal today. I'd love for our listeners to really get to know you abandon the heart motivation that really drives you then of course also come away with some new insights based on your observations of thousands of hours of delivering financial advice over the radio so we can accomplish both of those things that will be great. And by the way, any idea what episode your on how if you can.

Doing this and it's coming up on 30 years so probably 25,000 hours or so only here at this point, incredible, incredible, well, God is using you my friend in incredible ways to share his principles with millions as Steve said I'd like to go back because many folks are listening to your program. Of course, but maybe they don't know the back story. What you started by telling us what led you to become such an evangelist for wise money management.

Well I got my PhD into UMB. I messed it up royally and Sharon, I got married started off broke like most people you remember when you got money honey. We got love and I start buying real estate nothing down at real estate finance degree from the University of Tennessee and all the other letters and licenses after my name because I started collecting certifications and so forth and always enamored with money in math and that kind of stuff and I got wretchedly expected from any of Tennessee standards ended up with about $1 million net worth with about $4 million with real estate made $207,000. 26 years old and the bank came in and so there's a boy child owes us millions of dollars.

He's current, but this is scaring us and the Sultan of the bank and I got really scared and I called her notes and we spent the next 2 1/2 years of our life. Losing everything we own and finally with a brand-new baby and a toddler in a marriage hanging on by a thread. We were at the bottom and we file bankruptcy incredible along the way. I got saved and met the Lord and so we always say on God. On the way up. I got to know I'm on the way down and so I dove in and start studying Larry Burket and Howard Dayton and Ron blue. In other words, what the Bible has to say about money because apparently what I had been taught was and then it all began in the actually Larry intersects a couple of places into this story talk to us about the impact Larry Burket had well me in those days Jesus was 30 years ago. Larry was his influence was and in its prime and so if you turned on Christian radio. You got Dr. Dobson and you got letter Burket in Atlanta and a couple of other folks without that was it in and I was learning how to be a daddy because I do not be a daddy. I was learning how to be married to not be married, not from the Scriptures in Psalm all in Christian radio was a brand-new believer trying to get tooled up because I didn't know anything. I mean I was dumber than a rock.

Biblically speaking, and so Larry became. This is a pick them up on the radio.

Then of course about everything he ever wrote read it all.

I watch those old videos in front of that that that lecturing that he did and actually came down to belong to God and to the counselor training things and I really had to scrape the money together to do it because we're broke but I was so sure in my new fate and I was right that God had the answer to my problems and if I could learn how what the Bible says and what God might daddy says about marriage and about money. My life is going to get better. And guess what is right. That's Dave Ramsey he's with us today our program with finding out all about who he is, why he does what he doesn't chat some more. Right after this brief Greg give us a call later in the program. 800-525-7000 toll-free 800-525-7000 you listening to moneywise live your host is Rob West. Many people are experiencing financial challenges such as credit card debt downsizing that in jobs savings. In fact, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard Dayton shows that the Bible is a veritable rent for managing your finances, you'll discover the profound if it has a relationship with God, your money counts is available when you click the start button moneywise live.org you have money in a retirement account for just a general investing. You know, the stock market can sometimes be like a possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on that topic. Sound mind investing.org since 1990 sound mind investing in stocks offer financial wisdom for living well sound mind investing.RG been at risk and had bad service. Anytime you plan a special night out. It's not cheap. The foods good is well making eye contact is possible through the restaurant.

The soundtrack is empty. Just can't get anyone's attention so you have a choice go without salt, that you Mielke called while you might also was not wonder if it is in the sign of the times these guys rules BC with we the time to make eye contact and then we wonder why dealing with the people decide who it's interesting Jesus talked about that he made the point that if we wanted influence on the people, then we need to soothe them. It stands to reason if someone's waiting for me for you to feel basalt Sica.

I may not be too cooperative. If I wait until it is gone.

Called real influence happens we save other people. It's not rocket science.

Do you feel like your hands are tied with dad preventing you from serving God.

If you have credit card debt. Christian credit counselors can help through our debt management program we can get out of credit card debt. About 80% faster while honoring your debt info. For more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985 that joining us today on moneywise live is a good friend to also does what we do, just in a different area. His name is Dave Ramsey, author, teacher well-known financial authority and the Davis just a great blessing.

We talk every couple of years and it's always always a blessing to hear your voice and how it always feels like we pick right up where we were. We ended the time before and met a man and thanks so much for joining us on our thank you for having me Dave. Steve was talking about your work and perhaps a different part of the orchard for God's given you an incredible platform and I'm so grateful that you use that so well you really see yourself as a steward of that responsibility. Talk to us about reaching the general market audience and how you been so purposeful about really bringing Scripture into that conversation. Well, I was that guy. I mean I was unchurched and unsaved and shadow. In all, and I sought out Christian radio. After I met God, but because I can come from that world, so to speak about had a heart for Dave Ramsey was on the redneck hillbilly kid out there driving around that have a clue and he might be 50 and he might be 25 and he might be 19 watching me on YouTube now or she might be, but on I and Scott Trotta make what were doing when some for those folks but also make sure that they know where the help that they are getting is coming from.

Which leads them to the feet of Jesus. If I do my job.

Some days I'm better at it than others.

Yeah, well, you do an incredible job and as we said you have shared these biblical principles with more people than we can imagine.

And so God is using you my friend you know we talked about Larry Burket just before the break learn is to say something interesting, he would say that money in the way we handle it is the clearest indicator and what's going on in our lives spiritually found that to be true and if so, I thought we'd reflect on that statement absolutely quote him every week on that and and the other one is money problems are not are almost never the problem. There usually is something and is another Larry line and set it so much I can't think I said it, but but he said it and suck but it is it's you not wait wait, took sidebar on that said money is 80% behavior 20% had knowledge because the financial world is always try to fix it with math and it's not a math problem that you are getting overweight is a calorie problem yeah but it's also why my put in that doughnut in my face. Well it's right and you know it's about a mindset so often as you said, perhaps $25,000 or more on the radio delivering financial advice. What you observe Dave about the mindset of the people who get money right and really understand what it is from God's perspective but then translate that into the right habits. What's the mindset that works there is a humility that says it's up to me, the Lone Ranger and Tonto are not coming Batman's not gonna come save the day who we elect into a political office is not gonna save my life. It's it's going to be up to me and me in the and so as Christians we all make Christians who sit around and wait on God to do everything for them.

When God is saying you if you're a farmer, you probably put some seed in the ground and then you are.

Pray that I send the rain and the sun, and so we have this partnership with the Lord and in the productivity of wealth or the creation of wealth that it is both faith and works and haven't there been some wonderful books written on that subject. Well, that's right. And at some point we have to recognize our role as stewards that God is the owner and therefore we have a big responsibility is the manager or the caretaker of his resources, and yet we know Dave and you experiences every day as we do that there is some wise.

The world will tell us that will lead us down a path with our money that will cause havoc in our lives. In your experience, what's the lie that creates the most problems that we buy into II think it's it somehow falls under a lack of diligence I called diligence, excellence in the ordinary and in this, the diligent prosper and why are we not diligent on something. It's kind of an error against the opposite of humility. I was talking about a while ago that has an entitlement to it that says I'm breathing air.

God owes me or the world owes me or somebody owes me so I don't have to pay attention to this. And then under that I don't do a budget I get deeply in debt, I'm not organized. I don't do my will. I don't keep the life insurance in place. I don't do the tactical things because it feels like I don't have to on some it's it it's a type of arrogance. It's a different kind of arrogance, but it's a real one. Yes, Dave. Your friend and ours Iran blue likes to talk about generosity in the sense that he says giving breaks the power of money over lives of monies can rip over our lives.

Generosity is get a break that that's been a hallmark of your message as well. Talk to us about the role of giving as it relates to our money and if you see Ron blue's face and as soon as he starts talking about generosity. He breaks out in this huge grin can't keep himself from it and that's what generosity does. Generosity is a character quality and character qualities or decision.

Integrity is a character quality sensation.

It results in tactical things like actual giving it results and smiling.

It results in you hold the door open for someone's got two bags of groceries. It results in it's not all about me that creates this and so it is my most beautiful pictures of Christianity, we can say it's other centered rather than self-centered and that does go back to. I don't own it. I'm just a manager I'm just a steward and that is again a level of humility. These things are all tying together the thread here and that leads to outrageous generosity because that is the ultimate way of saying hey, this whole thing's not about me: by the way, generous people are highly attractive and so true.

Well, I'm so grateful that you allow that to be a core part of your message. Over the years that the reason we receive is not only just to be a bucket allow that to stop with us but to be a pipeline so that flows back into God's activity to date we have just about a minute left. I know there are some people that are discouraged.

Maybe they've gone through this recent pandemic and its left them in a really difficult spot. Perhaps they think there is no way out of love for you to finish today by talking directly to that person and providing a word of encouragement which 28 years old with a brand-new baby and a toddler marriage hanging on by thread.

Like I mentioned earlier I woke up at 4 o'clock the morning couldn't sleep and open my scriptures trying to learn what the Bible says and I was reading through the Bible systematically agreed to the Bible in a year shall randomly which is not a word we use wasn't random at all. I hit Romans five and it says rejoice in your suffering.

I was sitting there suffering. I was not real pleased to read that man got an argument there for a minute and he reminded me he's God rejoice in your suffering.

Suffering produces perseverance, which by the way someone character quality of successful people rejoice in your suffering. Suffering produces perseverance and perseverance, character, there it is again in character, hope, and hope is a gift of the Holy Spirit. If your hope is in your stuff going let you down. Never saw a router truck following Hirsch while yeah that is a good word will thank you my friend for joining us were so thankful for you.

The impact the Lord is allowing you to have look forward to having you back on of my brothers love you guys be good. Thanks so much Dave Ramsey has been our guest today. You can find out more about him and the ministry God has told him to Dave Ramsey your calls on any financial topic at 800-525-7000.

This is moneywise the many people adopt an attitude toward marriage and finances that it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard Deaton will help you discover God's approach to growing your finances and strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available when you click this form and moneywise live.org to match the home with my babies so badly but we needed them. So my thinking Scott got that education you got to good brain think you're going to get need to get a job was like going home to matter for you my child so badly so I bought paper around around me one so you sign this and you like your life to be infused with joy. Would you like to interject an internal dimension in the even the most ordinary day. Mother, Randy Alcorn says you can when you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan finding the immediate pleasure and eternal rewards of the treasure principle and what you discover. Life will never look the same treasure principle is available when you click the store button moneywise live.org today take your phone calls listed 800-525-7000.

Here's the good thing we have open lines available available to you right now you have a question about anything natural 800-525-7000. Hope you enjoyed that little conversation with a good friend of ours and them you know Rob, we forgot to ask was one question I was hoping that we'd ask Dave Dave Ramsey that was do you or do you not agree with budgeting and I said I thought you were going to ask him probably you thought I was going to ask him of the need of wheat we never got that information from you think there's a chance he doesn't agree with budgeting well but you know we never really asked them how things get go sideways when you just make assumptions is what I will say you know I started today by saying that I wanted folks to hear his heart, and you know what folks may not realize is he's the same in private as he is on the radio and that these genuine and that we were doing an event one time and it was that the country club and Dave was speaking for the organization I was with after everybody had left the room was clear. Dave didn't know I was still there. I was helping someone tear down some things that before we left and I saw him sitting off in the corner again. The place is empty and the server had come over to him and stopped to visit Mr. Ramsey. I have a question and he sat with that gentleman for 45 minutes nobody looking and just got into his life helped him process what he was dealing with. And that's the Dave Ramsey that I've come to really appreciate someone who is genuine really sees his work as a ministry and he he means what he says and it was about who someone is, when the lights are out, really tells you what they're really like where their heart is in this case a lights out were now completely, but you him being over there in the corner in the dark, not trying to impress anyone but God himself. So yeah appreciate you saying that rap thanks 800-525-7000 Hagerstown, Maryland hi Cliff, what can we do for you.

I sure enjoyed your listen to your local radio station in the podcast when I can come.

Yeah, my question is I'm learning a little bit about the momentum investment strategy lately that were we buy ETF mutual fund winter trending up and sell when they're turning down. I'm considering implementing that for my wife and I and our four 401(k) and 43B. I'm trying to reconcile that with some other voice occurred were not a good idea to try and time the market, but rather buying and hold, so I'm just wondering if this should recommend the strategy is one of many strategies out there.

Or maybe the condo that I wouldn't put it necessarily in the same category.

Cliff is trying to time the market what you're talking about is a rules-based investment strategy not relying on predictions about where the markets going and are we at the top and were trying to sell out and buy in at the bottom because all that is is relying heavily on predictions of how the stock market will perform in a period of time could be a week or a month or even a year that I think is a losing proposition. What you're talking about with the momentum strategy is something that where you need some expertise and you need to understand what you're doing, but given that it's a rules-based strategy.

I think it puts it in a different category and the idea behind momentum investing is that recent past performance trends can tend to continue into the near term future so mutual forms the mutual funds that have performed well over the past several months tend to continue performing well for the next several months. Just as funds with poor recent performance tend to continue to perform poorly now. This obviously runs counter to this idea that we hear often when it comes to investing in that is past performance is no guarantee of future results. And that's certainly true that recent past performance is more likely to persist than not, and that's why momentum is incorporated into a number of strategies including the one it sounds. Some of them, of sound mind investing that we talk to often. So what I would say is, although it's different, I'd be very careful.

I would make that my core strategy and I would make sure that I have some expertise some training and really understand what I'm getting into my preference.

Apart from having professional money management. My preference for the average investor is not to try to do that.

It takes a lot of time and it involves you doing a good bit of research, a lot of hands-on type investing. My preference is to really buy and hold for the long term with a properly diversified portfolio review capture market trends or the performance of a particularly skilled money manager and you let it go only tweaking the allocation periodically and by periodically I mean maybe a couple of times a year, but again I don't think there's anything necessarily wrong with this and I wouldn't certainly wouldn't say that it's it's the same as trying to time the market if they follow the Cliff yeah yeah okay I appreciate that. I mean, it looks like it was doing better and 401(k) options which really limited, as you know, maybe 20 or 30 mutual fund so I like the idea of maybe getting out of the target date funds that ran in maybe lamenting the momentum strategy with limited mutual funds we have available to try to little better and I would just say again, make sure you understand what portion of your total investable assets you're doing this with in the go slowly and again, my preference would be that to you seek some wise counsel and take a long-term approach, but I certainly can see why you'd want to get this shot Cliff were glad that you called today.

Thanks so much and were glad to hear that you're listening to our good friends at W.

CRH. 90.5 the compass up there in the Hagerstown tri-state area.

Great bunch of folks and they carried our programs for a long long time around. For those who would like to know more about the whole investing thing to me. What's the best way for them to contact us and what resources would be best for them to look at her look for. We have a quarterly newsletter we have a quarterly a podcast just for subscribers. Not to mention multiple resources with the best place to get your feet wet with us. Yeah, why would visit with our friends and partners's longtime partners, of sound mind investing. You can do that on the web, of sound mind investing.org a wealth of information for you to explore and then we got a great workbook handbook if you well on the website moneywise. I.org just click in the store for the sound mind investing handbook okay great information listening to moneywise live take the calls at 805 five 7000. Kathy Jeanette stay with us coming.

How should we as Christians think about and testing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing redesign investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice.

More information is available@investeventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately. It's not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org by my name is Ryan Koch youth ministry manager and Bible Institute verse is found in Galatians 220 I have been crucified with Christ is no longer I live, but Christ lives in the life I now live by faith and gave himself for me is all Christian spiritually miss their children knowing how to pray for them can be as challenging as knowing what to bring. Andre hosted Moody publishers reading for change podcast I challenges you to become your copy of do you know if you have enough enough money house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save, invest, and give wisely, how to create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live's son John Scott almost half the states now have tightened their coronavirus restriction about a rise in the number of infections nationwide 166,000 new cases reported yesterday that tears came amid reports of significant progress and work on a coronavirus vaccine. The CEOs of Twitter and Facebook defending their safeguards against disinformation in the presidential election.

Testifying before Congress today. Twitter CEO Jack Dorsey and Facebook CEO Mark Zuckerberg told a hearing of the Senate Judiciary Committee. They had strong programs in place to protect their platforms from being used to disseminate falsehoods orders to discourage people from voting in the upcoming Georgia elections socks lower today. The Dow lost 167 points that I slack off 24 this is SR and use God's wisdom and direction for your money, your finances, your checkbook to moneywise live west your calls and questions today and let's dive right back in Rob, Dinah Ohio hello Ruth what's in your heart. Hello my call. I hear the five in April. 58:8 we have a whole life policy and we weren't sure it that worth 60,000 each. Hannah and I was wondering if we should cash in and and and invested in retirement or what your opinion Ruth, do you have a need for the death benefit or do you have that covered with other assets that covered with other affect yeah Jacob for later that my husband doesn't have much in retirement. But if I so we weren't sure if we should just bite 90 toys that sure yeah I think the question is what type of account would you put this into me and obviously inside the policy.

There is some tax benefit, but you as you age, you're going to be having a larger and larger amounts going toward continuing to carry that death benefit. So I think you're gonna want to consider what else you might do with it and I kinda like the idea of you'll pulling this money out and putting it to work in a way that to make some sense were perhaps you could systematically over time put it into a retirement vehicle as you're able to within the contribution limits so that you could invested it could be growing over time and with some tax deferral inside that insurance policy.

Again, you got the drag of the embedded expenses and charges inside the plan. Not to mention you know whatever else you might have in terms of what that generates the return so do you will have Ruth, a financial planner that you sit down with once a year or an investment advisor of any kind. Okay and again asked this person that question as to whether it makes sense to cash these in. I wasn't sure. And at the same time I know where it all the technical work were kind of one of the things that money with and I went on take a chance that they'll yeah yeah well I think the key for you is to understand what WoW has it been doing in terms of the performance of this over time, and specifically related to this policy.

What is it that generates the returns are you getting is it a variable policy were you getting a portion of the upside of the stock market is in some sort of stated guarantee return. You want to understand that and then compare that to what you might do with it once you pull it out and I wouldn't pull it out and collapse the policy until you have a plan that you both bought into so perhaps I go back and visit with him and say if we were to pull it out, let's explore what we would do with it. How much risk would we have to take what type of return should we expect. How will taxes impact that both when we pull it out as well as moving forward and then really get a better understanding of what the plan is so you have something to compare it to, as opposed to just automatically pulling it out and then make sure you're willing to assume the level of risk commensurate with the return you're seeking versus what you have now, which is where the. The risk is been transferred to the end insurance company know what you're giving up is limited access to the funds and you're also giving up potentially return just based on you know how this is performed inside and and what the yield is each year. So again, I'd I'd probably revisit that tend, and develop a plan that you will feel good about before you make a decision one way or the other. Ruth we we trust that will help you and I thank you very much for calling in today, Newcastle, Indiana, Kathy, your next what's on your mind that we are talking about a retirement plan and Arlene or against an account like any of which are you better get to borrow against it if necessary are just left all the time and the fact that I am currently I am retired now so I am on a regular basis withdrawing from (each, not me. That comes out and having Held out at the time, so that part covered so I didn't even know filing against it for unexpected expenses like an option, or if that was even a good idea to what prompted the question I put a new rep had to put into the house this summer and I just looked through the fence. That night my account I can with the right to shake it yeah Kathy is this a 401(k) did you say I think, I apologize that I'm not the number of the cleaned up from my work that the money was put into the Pretax rights and are you still employed there. No, I'm not you retired yet.

Okay, you know, many plans allow participants to borrow from their account before they retire, fewer plans, though actually allow former employees to borrow from their 401(k) is not any IRS regulations are prohibited, but it's uncommon so you probably don't even have that option. But regardless, I generally don't recommend that Kathy yeah I don't like the idea borrowing from retirement plans. If in fact you need the money and there's not another source of funds, especially if you're in retirement.

That means you have less taxable income and not going to incur any penalties because you're over 59 1/2, then certainly that's what it's therefore to be able to generate an income from it visa be you taking systematic withdrawals from the retirement account and larger amounts as needed in line with your overall goals and objectives is are the withdrawals from this the retirement fund. Kathy key to your monthly income to be able to cover your lifestyle expenses or is this just for now what alt.taking down about the patent rights okay and you know roughly what percent you're pulling out each year. Now I do not, okay, what is the balance today roughly give an idea of the account that I feel like I could in no way it's running now. It still hold me for what I need okay very good will. That's the key. If you don't have a good feel for that or you lack some peace of mind about how long all of this is the last based on your current budget and the income sources you have, including this retirement account. I encourage you to get to the Council from a financial planner can help you look at that.

Make sure your money is going to last the rest of your life. But to this particular question is probably not an option to borrow it.

But even if it was, that's not the direction I would go.

I think the way you're approaching this and taking systematic withdrawals and then periodically little bit more as you needed to paying tax on it at that time is the way to go. I think you're doing this just fine Kathy were glad you called today thank you very very much and I were getting a lot of calls in here about retirement rep not not not sure we have the time before the break, but know this whole concept of retirement is not when you really see in the Bible. I'm not saying you should be thinking about it and preparing for it, but you other than the priest retiring in the Old Testament. There's just not a lot of information about preparing for retirement, whether it's biblical at all.

Whether it's something we should plan for or just let God take us through its what your thoughts in that regard from a biblical standpoint well and even your reference to the Levitical priest. He that was really not in any way consistent with what we would think of in terms of the definition of our culture's cortical retirement today so I think you're absolutely right.

We were created to be productive we were to take God's creation and improvement we were to be workers even before the fall and are calling doesn't have an expiration date, so we should retire something and not from something and continued asked the Lord what you have had like in retire to something that from something that includes best golf. This is minimized by the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives.

Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise live.org hi I'm very glad I'm here to help you understand how urgent it is to share your faith every opportunity to the eyes of a layman, how about you is your faith initiated by all that's going on. Well, here's a quick fix. Start sharing your faith journey.

Right. Nothing strengthened your faith facet and share your faith, because every time you share your faith in God is right there with you will manifest himself to you talk about following the script about loving Jesus said they would know you're his disciple by your love, your oratory or memorization of Scripture loving people in the midst of all this chaos immediately set you apart from everyone else. You be to become the light on the top of the hill. Forget about preaching. Allow God to love people through you with the Holy Spirit to speak to you effortlessly and once you start having these kinds of experiences, your faith will store. There is nothing more exciting than knowing God is using you to move people closer to join us in America.com route and relationships can change your prayer life praying. Colossians 312 through 14 over my relationship brings into your life of conflict with most important trait for your friends when they have their prayers, your prayer tail praying about your friendships can be an opportunity for God to grow your faith relational he loves redemption, unity, peace, and his kids getting a line down 133 130 social media bacterial radio money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button moneywise live.org today plan is review what is giving you. After all, he's known since well before God has a plan for all of our lives, our finances of the Bible calls us managers or steward. So that's what were trying to help you with today.

Let's go to Cleveland, Ohio, Antoinette.

We appreciate your patience and what's the problem you're having with the car and found that they have a class-action suit in the court on my particular motto and evidently they been having engine problem I hold about $11,000 on the car and if this is something I sit will continue to keep corporate something I sit try out yes did you see you are having trouble with it or you're just wondering if you were to have trouble down the road if I were to have trouble down the road and there is some type of therapy they can put on your car with some type a lifetime warranty. Let's not sure if I should take that chance going to let you come to the right place. Can Steve Moore actually has some working knowledge of the situation.

Steve just a little Sunday and Kiera are both owned by one day and this involves the Stata motor TH ETA. That's a 2.20 leader motor with direct injection and the direct injection means the motor runs hotter than non-direct injection cars and key is been having trouble with the since 2012 lots of trouble they've had class-action suits of their own in your having that kind of a situation.

Now, if you love your car I don't think that there is really a safety issue. What happens typically is that the car runs normally imperfectly and then just stops in the middle of traffic somewhere. Now you would think that's safety and I'm not saying it couldn't be safety related, but typically people just pull over to the side of the road than that they have the car towed and that's a bit of a pain in the neck if you will, but generally there are not safety issues and when there's a a class-action suit like this. They really do cover everything. They'll look at your car they'll look at your motor and they'll say Yep that's one of those and they cover everything and there's no expense to you. Generally, the car is in service for up to a couple of weeks and they give your loaner car, so if you love your car, and financially. You can you can afford the car. There's nothing wrong with the letting know you are letting it run out and see what happens. But if all of that scares you a little bit and you might want to trade the car, but then the question is do you let the person you're training it to was selling it to know that there's an issue because after all, who wants your car if there's a possible issue so well that's not much of an answer is, I think it is. Hopefully that's helpful to you.

Antoinette and I think that's really the key is NOT recognizing the reality of the situation, knowing that it will be covered because this is a known issue and you haven't had problems to this point.

So if you do, you have to recognize you have to go through the process and drive a loaner car and wait for it to be repaired but at the end of the day it's the question is apart from that doesn't really fit into your current spending plan so hopefully it gives at least some to think about Antoinette. We appreciate you listening and calling the yeah and Antoinette one last thing. It wouldn't hurt.

I know people lived on this.

It wouldn't hurt to take her car into the dealer and let them know that you're aware of the class-action suit and you'd like them to make a note of your car, your Vin number just in case something happens. Then when you show up you know a lot of that work has been done and in advance and it's not an issue at all. Not that it should be an issue.

We wish you the very best Sarasota, Florida hi Ruth, what's on your mind.

No mortgage. My number and investment with Northwest mutual conservative risk portfolio to annuity life insurance. I also have an IRA as well as some savings. I'm planning on selling my house next year into an all-inclusive retirement community adjustment toward and five more will be maturing next year, with the interest rates so low. I am sure where to reinvest these funds should I increase my holdings with Northwest in the portfolio with the longtime advisor where the fee is 1.4% that might not be putting all my eggs in one basket, so to speak, or should I open it different account with Merrill Lynch whether he is only .85% or should I consider an altogether different option. What would be the total of the five CDs will six. I guess in total roughly about 440,000 okay and how has that conservative portfolio that you have been doing over the years here pretty crazy after losing about 11,000, and it came back to earn about 10,000 very conservative risk tolerance has but let's say here today have been about 4500 and I don't know whether I should be real concerned about that or I don't know that well. I think the key here is that you wanted to have some peace of mind. I don't like you necessarily locking this money up into new CDs.

Given the fact that were in such a low interest rate environment so I think having a money manager, a professional investment advisor caring for these assets is probably the right strategy because he or she can deploy them in a can. The conservative portfolio as you have with Northwestern and what that would tend to look like is a small allocation to high-quality stocks. Probably many of them with dividends and then a larger allocation to probably bonds and preferred stocks and some cash equivalents and then altogether with the goal of probably generating 4 to 5% a year, and ideally after the management fee and I think you know if you can do that that would be perfect because then you have proper diversification. Your focus is on really stability, preservation of capital you got a small allocation to stocks which, in the good years is going to provide a little bit of lift of the portfolio in a period of time or we were in a bear market or recession which we could have down the road. We certainly will have another one at some point the question is when will it roll over, then you wouldn't touch the stocks you wait for them to rebound, but the income generating portion of the portfolio would continue to provide the income that you're looking for, so I would tend not to go with more CDs. I tend not to lock it up in an annuity, I'd probably either put it with the Northwestern advisor or if you want to introduce a second investment professional into the equation. You could certainly do that. There's nothing wrong with that. I don't think you're necessarily to highly concentrated, meaning your lacking diversity because you're just because with one advisor because that advisor could have plenty of diversification. All that you need in the portfolio, but there's nothing to say that with an extra half $1 million coming due from CDs would make sense to have a second money manager also deploying the conservative strategy in the equation and if you were to look for somebody like that. It sounds like Yorty have one potential offer or opportunity you could look at some other wrap certified kingdom advisors there in Sarasota by going to our website moneywise live.org and just doing a search but bottom line route to your question, I wouldn't renew those CDs.

I probably wouldn't go with an annuity I'd be looking to deploy this in an appropriately diversified and conservative portfolio of stocks and bonds Ruth God bless you. Thanks so much quickly. Tampa, Florida.

Jeanette will have to be very quick. How can we help you in April and I'm gonna retire in a Roth IRA and I would have that in a traditional IRA so my question is I'm taking a minute take out a lot and get past my house with it when I retire or the other thing would be to take it might have been here for a couple years traditional and pay the taxes yeah what will your income be in retirement. What income sources we have Roth IRA property rental income may have other 401(k) that no yeah sure I would talk to your tax professional Jeanette before you made that decision. It's a great question and really what you're gonna want to look at is a couple of factors number one is what tax will be due and I know you said if you took it from the traditional IRA, you would be taking it out over time systematically as to not push your taxable income up into another perhaps tax bracket and that's good. But the other issue that you're going to want to explore is you know whether or not you need this money long term.

If you want to be able to leave it there. One of the benefits of the Roth is you don't have the required minimum distribution so that money could continue to grow and be available for your errors as an inheritance or something like that.

So what I would want to know before I weigh in on this and perhaps you take this up with your tax preparer is based on the income where generating with our rental properties and other taxable income.

We have in our current trajectory with our retirement assets are we better off to pull from the Roth the traditional or a combination of the two, but what I know for sure is if you do it from the traditional, you definitely need to space it out over multiple years and Jeanette were that were going to have to say goodbye today, but I sure hope that answers all your questions for you, at least most of the questions you had and was glad that you called today.

Thanks very much.

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